State to study rising coal price

Posted on March 24, 2006. Filed under: Generation Plants |

A story by Tom Content in the Milwaukee Journal Sentinel reports on concerns about the cost of coal:


State energy regulators will investigate the impact that the rising price of coal and disruptions to rail deliveries are having on Wisconsin utilities and electric rates.

The state Public Service Commission announced Thursday it will study the rising cost of transporting coal used to power Wisconsin power plants coming from the Powder River Basin in Wyoming.

The state’s utilities saw higher costs of about $50 million last year because of disruptions caused by train derailments last spring in Wyoming. Those derailments caused fewer shipments of coal, leading utilities to conserve coal and rely more heavily on natural gas-fired power plants rather than coal plants.

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